The following information is available for Gerard Corporation

(a) Compute earnings per share for 2012 and 2011 for Gerard, and comment on the change. Gerard??s primary competitor, Thorpe Corporation, had earnings per share of $1 per share in 2012. Comment on the difference in the ratios of the two companies.(b) Compute the current ratio and debt to total assets ratio for each year, and comment on the changes.(c) Compute free cash flow for each year, and comment on thechanges.

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2011 2012 Current assets Total assets Current liabilities Total liabilities Net income Cash provided by operating activities Preferred stock dividends Common stock Expenditures on property, plant, and equipment Shares outstanding at beginning of year Shares outstanding at end of year $ 36,000 205,000 30,000 240,000 22,000 72,000 100,000 40,000 56,000 6,000 80,000 90,000 6,000 3,000 1,500 12,000 27,000 40,000 40,000 75,000